Posted on 10/15/2015 9:16:50 AM PDT by Lorianne
The math is pretty simple: A lack of purchasing power for consumers has led to a lack of pricing power for companies.
When it comes to the U.S. economy big-picture outlook, the ramifications are more complicated, and not particularly pleasant.
Wednesday's producer price index reading, showing a monthly decline of 0.5 percent, demonstrates a larger problem: At a time when policymakers are hoping to generate the kind of inflation that would indicate strong growth, the reality is that deflation is looming as the larger threat. Declining prices often would be treated as a net positive by consumers, but income weakness is offsetting the effects.
Even Wall Street is feeling the heat. Prices for brokerage-related services and financial advice dropped 4.3 percent in September, accounting for about a quarter of the entire slide for final demand services.
(Excerpt) Read more at cnbc.com ...
I feel like I’m listening to a closed loop tape.
Your anti-business rhetoric is strangely unsatisfying.
I’m done here. Have a good day.
We paid $10 for a small packet of stew meat. STEW MEAT!
North Korean economics at work.
If only Rush had got his wish re: Obama when he said, “I hope he fails.”
Oh, poor corporations. They're so overly taxed. They had to ship millions of jobs and entire industries to Communist China etc, to save themselves. All while the corrupt politicians THEY bankrolled kept those borders wide open so they could get that same cheap labor here at home. Their pockets are bulging with politicians and cash. That must be awful uncomfortable. How do they ever get by sparky?
Do your patriotic duty sparky and send them some extra cash. I'm sure they could use it!
North Korean economics at work.
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NK economics doesn’t kick in until the neighborhood dogs start disappearing .... unless the source of that ‘stew’ meat was kind of “iffy”.
Excellent post.
But when the SHTF it will still be “Bush’s fault”
But when the SHTF it will still be Bushs fault
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You think the raindrops on the other side of the aisle will blame themselves for the flood?
I prefer to call price increases price increases or “raising prices” too many people get confused by combining the terms. The remedies are different as you probably know. We have too few dollars (have had been fighting this for years actually) but with increased demand and in some cases reduced supply of goods we are seeing some prices raise.
This is the opposite of what Germany was suffering from in the 1930’s they suffered from hyperinflation (too many dollars in the market) Same with at least most of the other examples you cite.
For inflation, one reduces money supply...there are several ways to do this. For price increases of products and services either demand needs to fall (generally by substitution) or supply increased (various ways to do this).
The fact that money is so cheap is an indication of deflation...high interest rates are when we suffer from inflation. What is even more troubling that being backed up against the wall on tools to fight deflation, is China and other nations (central banks) have been unloading Treasuries for the past few weeks.
We are running to the end of the game, economically. The Fed has done a tremendous job of prolonging the collapse but it is nearing and there is nothing they can do about it. So, prep up...food, water, defense.
They know - but to fix anything they would have to give up some power.
And just like Mr. Thompson in Atlas Shrugged, that idea freaks them out so much they refuse to even consider it.
Great thread
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